The Venture Capital Schemes (and SEIS, EIS and VCT in particular) are government initiatives designed to assist small to medium sized enterprises.

They achieve this by providing the tax incentives summarised below to investors in qualifying companies. It should be noted the income tax relief is given as a tax reclaim, and it is therefore limited to tax paid or due. Income tax relief is available to investors who have a UK income tax liability against which to set the relief; investors do not need to be UK resident. These tax incentives enhance the returns and help to reduce risk to investors’ capital. However, investors must consider the investment risks and opportunities before they decide to invest and should seek advice from a financial adviser.

EIS

SEIS

VCT

SITR

Upfront Income Tax Relief

up to 30%

Up to 50%

up to 30%

up to 30%

Annual limits 2018/19

£1m + carry back allowed1

£100k + carry back allowed

£200,000

£1m + carry back allowed

Tax Free Exit

Yes

Yes

Yes

Yes

Capital Gains Relief

Up to 28% deferral2

Up to 14% saved2

Nil

Up to 28% deferral2

Tax Free Dividends

No

No

Yes

No

IHT Free

Yes (after 2 years)3

Yes (after 2 years)3

No

Yes (after 2 years)3

Share Loss relief

Yes

Yes

No

Yes

Minimum Holding Period

3 years

3 years

5 years

3 years

1 increased to £2 million for investments made on or after 06 April 2018 provided that any amount over £1 million is invested in “knowledge-intensive” companies

2 depending on the nature of the asset and the date of disposal

3 the value of the shares may qualify for 100% business relief (BR) from inheritance tax (after a minimum two-year holding period, unless the shares are “replacement business property”)

For further details of the investment risks please see the Key Risks section of this website. Tax treatment is dependent on the circumstances of each individual and may be subject to change in the future.

MICAP Scores and Risk Ratings are based on the analysis and opinion of MICAP and are not to be taken as advice. They may not be taken as investment advice and you should seek your own independent financial advice before investing.

Alternative and unlisted investments are inherently high-risk and invested capital is at risk. Nothing on this website may be taken as investment advice. Tax ramifications may vary depending on your personal circumstances. Please consult our full risk warning for more information.

MI Capital Research Limited is an appointed representative of Resolution Compliance Limited, which is authorised by the FCA (574048).

An Indagate Group Company

MICAP is a trading style of MI Capital Research Ltd, an Indagate Group company registered in England and Wales with registered number 08634361 and with registered office address 48 Queen Anne Street, London W1G 9JJ.

MI Capital Research Ltd is an Appointed Representative of Thornbridge Investment Management LLP (FRN: 713859), which is authorised and regulated by the Financial Conduct Authority.

Terms

Regulatory Information

Alternative and unquoted investments are inherently high risk and invested capital is at risk. Tax ramifications may vary depending on the investor's personal circumstances. Please consult our full risk warning on our site for more information.

MICAP does not give investment advice. Access to the platform is restricted to investment professionals such as financial advisers and wealth managers. Persons without such professional investment experience should not log in. Only information produced by an FCA regulated firm and issued or approved as a retail financial promotion should be shared with private investors.